Democrats on Capitol Hill ripped into executives from major oil companies at a contentious hearing Wednesday, accusing them of price gouging and pressuring them to invoke their inner “patriotism” to lower gasoline prices by sacrificing shareholder returns and ramping up production.
“I don’t trust you,” said Rep. John Sarbanes, Maryland Democrat. “Your role is to lead large for-profit corporations that are looking to maximize the returns to your shareholders. I don’t trust you not to take advantage of this situation to try and meet that goal.”
The six executives, who were hauled in for a congressional grilling as Democrats face constituents who are irate about a painful spike in gasoline prices, pointed the finger right back at Democratic anti-fossil fuel policies.
In a series of sharp exchanges between the CEOs and the Democrats on a House Energy and Commerce panel, the executives rebuffed assertions they have control over a volatile global energy market that’s been exacerbated by Russia’s invasion of Ukraine and Democrats’ policies that they said have a “chilling effect” on production.
“That’s a lot of garbage,” said Energy Committee Chairman Frank Pallone, New Jersey Democrat. “Don’t tell us you can’t do anything about it. You can do something about it, and we expect you to. Maybe it’s a matter of patriotism.”
There is no magic wand that can be waved to fix energy prices in the short term, the executives said.
“I want to be absolutely clear. We do not control the market price of crude oil or natural gas, nor of refined products like gasoline and diesel fuel, and we have no tolerance for price gouging,” said Chevron CEO Michael Wirth.
He later added: “I note with irony that less than six months ago, I was asked to pledge to reduce production. I resisted that request and pledged to increase production, and I reiterate that pledge today. We will increase our production.”
Mr. Wirth and the CEOs of BP America, Devon Energy, ExxonMobil, Pioneer Natural Resources and Shell USA used the hearing to urge President Biden to expedite approvals for new oil and natural gas projects on federal lands and put an end to the Interior Department’s pause on new drilling leases.
In addition, they cited Democrats’ desires to end federal fossil fuel subsidies and calls to limit production over climate change concerns.
Domestic oil production remains below pre-pandemic levels, Democrats noted, which the executives acknowledged but insisted would soon change as they produce more each day.
Prices at the pump have reached all-time highs, acting as a major thorn in the side of Democrats battling bleak reelection chances this fall. Recent polling has shown the majority of voters aren’t buying the price gouging allegations and are pinning the blame on Democrats and the White House.
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The national average for a gallon of regular gas was $4.16 as of Wednesday, down just 17 cents from its record-high of $4.33 last month, according to AAA. Gas has risen an average of $1.29 per gallon from one year ago.
The executives batted down price-gouging allegations and refused demands from Democrats to share some of their tens of billions in profits with everyday drivers by limiting dividends and stock buybacks. The executives maintained they can please investors while increasing production.
Devon Energy CEO Richard Muncrief conceded that “returning cash to our shareholders is absolutely one of our top priorities.”
A majority of fossil fuel firms, nearly 60%, indicated in a Federal Reserve Bank of Dallas survey last month that investor pressure was the biggest restraint to growth while less than 10% said it was due to “government regulations.”
Republicans chalked up the entire hearing to a “deliberate distraction” that was “purely political,” as Rep. Cathy McMorris Rodgers put it. The Washington Republican and ranking member of the committee was displeased that Energy Secretary Jennifer Granholm declined her invitation to testify.
“This is not the Putin price hike or the result of companies suddenly deciding to make money in the year 2022,” Mrs. McMorris Rodgers said. “This is the Biden price hike.”
Democrats remained frustrated and unsatisfied throughout the executives’ testimony. But one thing that they could agree on was the need to further clean energy projects to reduce America’s reliance on fossil fuels and imported energy.
“If we actually move toward a renewable energy and a domestic clean energy agenda, then we’ll be freed from dependence on an international oil market,” said Rep. Diana DeGette, Colorado Democrat.
• Ramsey Touchberry can be reached at rtouchberry@washingtontimes.com.
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